Michigan Considers Click-Through Nexus, Simplified Tax Code

Feb 5, 2013
| Gail Cole

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The Michigan House has released the 2013-14 House Republican Action Plan. Among other things, it calls for the state to "address unfair tax loopholes" and "simplify the tax code." GOP lawmakers are calling for "Main Street Fairness" with respect to online retailers.

The relevant section of the action plan reads:

Address Unfair Tax Loopholes Among Michigan Businesses

1. "Eliminate more tax loopholes: 'Main Street Fairness' requires online retailers like Amazon.com to collect and pay sales taxes, just like every other business. We will remove the 6% competitive advantage that out-of-state online retailers enjoy over Michigan companies."

The Michigan Treasury disagrees. In July 2012, treasury spokesman Terry Stanton said, "Our position is [Brilliance Audio is] not an entity that gives Amazon nexus, so we don't have the authority to send them a bill."

Governor Rick Snyder (R) would like that to change. Last year, he urged "the U.S. Senate to pass legislation allowing states to collect sales tax from online and catalog retailers."

The recently released House Republican Action Plan supports that stance.

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.

Avalara Author

Gail Cole

Avalara AuthorGail Cole

Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.